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Ledger Account

What is a Ledger Account?

The ledger account is the basic unit in the accounting system. Ledger accounts are set up for each type of financial transaction the entity uses to operate its business. So this allows for records to be kept for all financial aspects of the business.

Types of transactions are classified into assets, liabilities, owners equity, revenue and expenses. The ledger accounts are coded into these sections and a ‘chart of accounts’ lists all the ledger accounts and account numbers.

what is a ledger account

Records are kept for all the business transactions. So this requires a running balance is kept, so as to record the balance at any point in time.

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08

Oct'18

Accounting Questions and Answers

Fiona Smith

Accounting Questions and Answers Learn the basics with these accounting questions and answers so you succeed with your accounting study.

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08

Oct'18

What are the Types of Ledger Accounts?

Fiona Smith

This infographic lists the five types of ledger accounts. The basic ledger account types are assets, liabilities, owners equity, revenues and expenses. The types of ledger accounts have a debit or credit nature. This nature is determined by the accounting equation relationship. The ledger accounts go into the various financial …

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01

Jun'18

What is a Ledger Account?

Business Tutor

What is a Ledger Account? This is a common question for beginning accounting students. There should be a ledger account for each financial transaction type. This example shows a columnar ledger account. Accounting software packages report transaction balances using this style. (Often people learn accounting using a T account ledger …

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09

Jan'18

How do you Post a Journal to the Ledger Accounts?

Business Tutor

Posting a Journal to the Ledger Accounts Posting a journal to ledger accounts is key to the accounting process. The journal specifies the ledger accounts to be adjusted because of a financial transaction. The journal must have equal debit and credit items. Finally the trial balance is the summary of …

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